ANALYSIS 31
cushion with an all-in-one approach for pore minimisation, anti-ageing, blemish control, anti-pollution and more. Other instant effect products include pore minimisation products such as Lancôme Instant Pore Minimiser – which helps reflect light from the skin and help minimise the appearance of pores.13
In China, 19 billion face masks are used per year as it is perceived that face masks give the user better results. Face masks can be used at any time, at home, or even on public transport. The major claims associated are moisturisation, whitening and pore reduction.12 Claims are slightly different depending on the age of the consumer among the younger generation. Healthy, radiant skin that glows has become the new definition of beauty.
These drive brightening and whitening claims, especially in China as shown by the graph in Figure 4.15 Growth for face masks in China between 2017-2019 has seen an increase by 29% to reach a market value of USD$ 18.074 M. Similar growth is seen in India and higher growth in Malaysia; however both these countries are coming from a lower starting point. The face mask market in China outperforms both Japan and South Korea, whereas the market in Australia has contracted by 7%.12
What product should you launch next in China? With the growing awareness of having good skin, and ongoing education of the Chinese consumers, the Chinese consumer is now looking for a more complete, high tech and indulgent skin care routine. This has led to the rise in ampoule skin care. Ampoule facial products have been used sparingly in China over the last few years, only used for special occasions such as weddings, parties, photo shoots, etc. That is until now. Recently the number of internet searches for ampoule products doubled in only 6 months in the later half of 2017 and this growth has continued to be strong, with brands such as MartiDerm being valued at RMB 100M (approx. AUD$ 20.9M) in only 10 months since it launched on Tmall International; a B to C operation
2017 787
Hydration Whitening Pore refining
42% 46% 53% 52%
Cleaning
36% 38% 44% 52%
Brightening oil Balancing
23% 25% 27% 37%
Soothing Exfoliating
30% 30% 28% 22%
27% 31% 39% 35%
n 20-24 n 25-29 n 30-39 n 40-49
Figure 4: Skin care claims in China. Source: Skincare products in China: characteristics of female consumers
owned by Alibaba. Ampoule products are hitting the Chinese market containing products such as retinol, hyaluronic acid as well as Vitamin C, however, there is room for some innovation in the space, such as using unique active ingredients or Chinese traditional medicine, developing new concepts or technologies or simply incorporating some uniquely Australian ingredients such as Lemon Myrtle.5
Conclusion
So, what should a brand owner do if they want to conduct business in the Chinese market? Taking the above into consideration, firstly a brand owner should identify the needs and uniqueness of your products and how you will position these in the Chinese market based on the consumer desires; what advertisement and social media plant forms will you use; how will you ensure sufficient coverage. The route to market, will you register your material, or will you create the need for Daigou shoppers to be buying your products. Whatever path you chose remember, the
Table 1: Facial care: Retail Market Value Projections. (mUSD) Country Australia
2018 722
China India
Japan Malaysia South Korea September 2019
15,805 1390
13,536 452
6,648 Source: Mintel Spotlight on facial masks 2017
16,793 1,447
13,844 490
6,730
2019 743
18,074 1,520
14,994 563
7,075
% change between 2017-2019
-7% 29% 23% 16% 41% 16%
needs of this market are different to your own domestic market so keep this in mind when developing your brand.
References 1 Mintel, Insights report the future of facial
skincare 2018. 2
https://www.cosmeticsdesign-
asia.com/Article/2018/08/20/C-beauty-is-on- its-way#.W7PDNKDN57o.facebook
3
https://www.cosmeticsdesign-
asia.com/Article/2018/11/11/Aussie- cosmetics-firm-spurns-domestic-market-to- sell-directly-to-China-through-daigou
4
https://www.mintel.com/blog/personal-care- market-news/overcoming-hair-wash-phobia-in- china
5 Mintel, Insights report is this China’s next skincare superstar
6 Euromonitor international May 2018 – Passport, Skin Care in China
7
https://www.businessinsider.com/australia- post-store-for-daigou-who-ship-products-to- china-2018-5
8 iResearch report, 2018. 9 Admaster 2018 PC industry Report 10 Mintel, Skincare Insights report Asia 2016 11
http://www.nasa.gov/topics/earth/features /
health-sapping.html.
12 Mintel Spotlight on facial masks 2017 13 Boston analytics, landscape study; Beauty, Health & Wellness industry.
14 Mintel Insights, what’s trending in China Skincare 2017.
15 Skincare products in China: characteristics of female consumers
16
www.cosmeticdesign-asia.com/article/2018/08 /23/beauty-driven-app-Meitu-to.
17 Mintel Insights, The Chinese consumer 2018 PERSONAL CARE ASIA PACIFIC
38% 43% 49% 44%
55% 59% 63% 59%
71% 77% 78% 84%
PC
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